Delhi High Court denies relief over FSSAI’s labelling restrictions, leaving PepsiCo, Monster and Reliance Consumer unable to manufacture drinks carrying the disputed label while Red Bull operates under interim relief
PepsiCo has warned that its popular energy drink brands could face nationwide stock shortages within two months if restrictions on the use of the ‘energy drink’ label continue, raising concerns over supply disruptions and distribution in one of India’s growing beverage segments. The company told the Delhi High Court that it remains unable to manufacture products carrying the disputed label, while rival Red Bull has secured temporary relief from the regulatory order.
The warning came on Thursday after the Delhi High Court declined to allow PepsiCo to resume manufacturing drinks labelled as energy drinks. The restriction follows an order by the Food Safety and Standards Authority of India (FSSAI), which directed manufacturers of high-caffeine beverages to stop using the term in June amid concerns over potential health risks.
During the hearing, PepsiCo’s lawyer, Sandeep Sethi, warned that supplies could dry up within a couple of months, adding that competitors were able to continue manufacturing their products
Red Bull obtained interim relief from the regulator’s order last month. PepsiCo, Monster and Reliance Consumer, however, remain restricted to selling existing inventory carrying the disputed label, putting their ability to replenish supplies at risk.
Packaging Restrictions Threaten Distribution
The dispute poses operational challenges for PepsiCo, whose Sting brand has become a prominent player in India’s energy drink market. The company also sells Adrenaline Rush in the country. According to market researcher Euromonitor, the segment expanded significantly following Sting’s launch in 2017. Its Rs 20 plastic bottles have gained popularity among consumers aged 15 to 19, as well as in rural markets.
PepsiCo told the court that restarting production under revised labelling requirements would be a lengthy process, particularly because cans bearing the existing branding have already been purchased and printed.
“That will play havoc with our entire distribution system,” Sethi added.
The dispute centres on the extent of the food safety regulator’s authority to govern product classification and labelling in India’s expanding energy drink market. The outcome could affect manufacturers’ packaging, production schedules and distribution arrangements.
The court has not yet ruled on the merits of the regulatory restrictions. The next hearing is scheduled for 30 October.
